Sebi to Resume Review of $440 Million Digit Insurance IPO
According to a report, SEBI will resume its review of Digit Insurance’s $440 million initial public offering after the company resolves certain compliance issues that had caused the regulator to halt the process.
SEBI placed the IPOs of Canadian billionaire Prem Watsa-backed Digit Insurance in ‘abeyance’ earlier this month, stating that certain observations had been issued but failing to elaborate.
According to a report, the regulator was concerned that privately held Digit issued shares to more than 200 individuals in the previous fiscal year, which is not permitted under Indian laws and regulations.
According to one of the sources, Digit informed the regulator about the share issue, which the company claimed did not violate any regulations.
SEBI has agreed with Digit’s reasoning and decided to remove the IPO’s “abeyance” status from Monday and restart the review process, the two sources said, declining to be identified as the decision is not yet public.
A Digit spokesperson declined to comment, and SEBI did not respond to a request for comment.
Digit Insurance, which is also backed by TVS Capital Funds and Sequoia Capital, hopes to raise $440 million through an IPO for its non-life business. According to sources, it is seeking a valuation of between $4.5 billion and $5 billion.
Digit, founded in 2017, is attempting to expand into general insurance. Separately, it is entering the life insurance market through its Go Digit Life venture.
According to the prospectus filed by the company last month, the IPO will consist of new shares worth 12.5 billion Indian rupees ($158 million), with existing shareholders selling up to 109.4 million shares.
Originally published at https://cxotv.techplusmedia.com on October 1, 2022.